Savanna pays $85M to Invesco for office leasehold in Chelsea, down from $158.5M

Savanna through the entity Schwarzhorn Re 430 W 15 LLC paid $85 million to Invesco through the entity 430 West 15th Street Owner, LLC for the 99-year ground lease controlling the office building (O3) at 430 West 15th Street in Chelsea, Manhattan. The expected use is cash flowing.
The deal closed on February 12, 2025 and was recorded on February 21, 2025. The property has 111,300 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $763 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Invesco was Jaime Kelley . The signatory for Savanna was Nicholas Bienstock .

Invesco acquired the leasehold in June 2018 for $158.5 million. The fee is owned by a company called BRK Garage Co., managed by Danny Benau, with the ground lease having commenced in 2014 and runs to 2113.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Savanna purchased one property in one transaction for a total of $255 million and sold four properties in four transactions for a total of $324 million over the past 24 months.
The seller Invesco had not purchased any other properties and sold three properties in three transactions for a total of $202.3 million over the same time period. The 111,300-square-foot property generated revenue of $12.2 million or $110 per square foot, according to the most recent income and expense figures.

The property

The office building in Chelsea has 111,300 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 103 feet deep with a total lot size of 12,906 square feet. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $49.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $2,300 in OATH penalties in the last year.

Development

For the tax lot building, it received an initial renovation certificate of occupancy on November 25, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 6th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Chelsea has 1.6 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 15 commercial properties representing 600,998 square feet of the 1,064,910 square feet. The largest owner is Google, followed by Taconic Partners and then Vornado Realty Trust.
On the tax block, there were two new building construction projects totaling 230,670 square feet. The largest is a 122,962 square-foot business (B) building submitted by Aurora Capital Associates and filed by Bobby Cayre with plans filed May 21, 2015 and permitted January 3, 2017. The second largest is a 107,708 square-foot business (B) building submitted by Steves Barthel with plans filed June 24, 2008 and permitted June 2, 2016.

The majority, or 78 percent of the 1.1 million square feet of built space are office buildings, with retail buildings next occupying 17 percent of the space.

The seller

The PincusCo database currently indicates that Invesco owned at least 42 commercial properties with 1,686 residential units in New York City with 2,197,185 square feet and a city-determined market value of $258.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 2,197,185 square feet of built space are elevator properties, with office properties next occupying 19 percent of the space. The bulk, or 81 percent of the built space, is in Bronx, with Manhattan next at 19 percent of the space.

The buyer

The PincusCo database currently indicates that Savanna owned at least nine commercial properties in New York City with 1,648,826 square feet and a city-determined market value of $345.4 million. (Market value is typically about 50% of actual value.) The portfolio has $456.4 million in debt, with top three lenders as PIMCO, Aareal Capital, and Cottonwood Management respectively. Within the portfolio, the bulk, or 80 percent of the 1,648,826 square feet of built space are office properties, with O4 properties next occupying 20 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.

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